The pairing saw a swift and sharp drop to the detriment of the euro. One of the reasons for such a fall was mainly due to the fact that traders and investors at that particular point in time had an appetite for safe haven assets. Such a move was largely due to the striking down of the Malaysian airplane in eastern Ukraine on Thursday. The Russian Government has clearly denied any involvement, however such a move did not prevent further sanctions being placed by the U.S. Traders and investors are also keeping a close eye on the current and tense situation current seen between Israel and Gaza. Nevertheless the euro made a convincing effort in recovering from its session decline towards the end of the trading session. Now in terms of forward direction in regards to the euro, European Central Bank President is clearly keeping his options open in regards to an additional increase in stimulus of monetary policy. In terms of the dollar we have seen an increase in demand on the back of Federal Reserve chair Janet Yellen indicating an interest rate rise may be implemented soon.
GBP/USD
The pound declined sharply on Friday amid the geopolitical tensions occurring in once again between Russia and Ukraine and the tensions in the Middle East. The pound fell to lows not seen in almost a month. The pound saw another week of losses after previously seeing highs not seen in six years. Another reason for the recent fall of the pound was due to the fact that earlier last week Federal Reserve chair Janet Yellen gave traders and investors a positive and clear indication that if the positive recovery of the U.S economy continues in the pace that it is going, interest rate hikes will be on the cards sooner rather than later. Traders and investors will be keeping a close and sharp eye on the event to occur later this week in the form of releasing the Bank of England’s minutes of the it most recent meeting which may give clues as to the time frame of any interest rate increases.
July 21, 2014 – Forex News
Hot Asset For Today: EUR/USD
EUR/USD
The pairing saw a swift and sharp drop to the detriment of the euro. One of the reasons for such a fall was mainly due to the fact that traders and investors at that particular point in time had an appetite for safe haven assets. Such a move was largely due to the striking down of the Malaysian airplane in eastern Ukraine on Thursday. The Russian Government has clearly denied any involvement, however such a move did not prevent further sanctions being placed by the U.S. Traders and investors are also keeping a close eye on the current and tense situation current seen between Israel and Gaza. Nevertheless the euro made a convincing effort in recovering from its session decline towards the end of the trading session. Now in terms of forward direction in regards to the euro, European Central Bank President is clearly keeping his options open in regards to an additional increase in stimulus of monetary policy. In terms of the dollar we have seen an increase in demand on the back of Federal Reserve chair Janet Yellen indicating an interest rate rise may be implemented soon.
GBP/USD
The pound declined sharply on Friday amid the geopolitical tensions occurring in once again between Russia and Ukraine and the tensions in the Middle East. The pound fell to lows not seen in almost a month. The pound saw another week of losses after previously seeing highs not seen in six years. Another reason for the recent fall of the pound was due to the fact that earlier last week Federal Reserve chair Janet Yellen gave traders and investors a positive and clear indication that if the positive recovery of the U.S economy continues in the pace that it is going, interest rate hikes will be on the cards sooner rather than later. Traders and investors will be keeping a close and sharp eye on the event to occur later this week in the form of releasing the Bank of England’s minutes of the it most recent meeting which may give clues as to the time frame of any interest rate increases.
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